Permits layoff plans as substitute for employment
reconciliation plans for joint meetings or shared service agreements under
certain circumstances.

CURRENT VERSION OF TEXT

As introduced.

An Act
concerning the transfer of employees in joint meetings and shared service
agreements and amending P.L.2007, c.63.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 11 of P.L.2007,
c.63 (C.40A:65-11) is amended to read as follows:

11. a. When a local unit
contracts, through a shared service or joint meeting, to have another local
unit or a joint meeting provide a service it is currently providing using public
employees and one or more of the local units have adopted Title 11A, Civil
Service, then each of the [agreement]local units shall
include an employment reconciliation plan to the Civil Service Commission
in accordance with this section [that
and, if one or more of the local units have adopted Title 11A, Civil Service], which shall
specifically set forth the intended jurisdiction of the Civil Service
Commission, and identify the local unit providing the service and the local
unit receiving the service. [An
employment reconciliation plan shall be subject to the following provisions:]

A layoff plan for a local
unit that has adopted Title 11A, Civil Service, may be substituted for an
employment reconciliation plan if it includes, at a minimum,

[(1)]
a determination of those employees, if any, that shall be transferred to the
providing local unit, retained by the recipient local unit, or terminated from
employment for reasons of economy or efficiency[, subject to the provisions of any existing
collective bargaining agreements within the local units].

[(2) any employee terminated for reasons of
economy or efficiency by the local unit providing the service under the shared
service agreement shall be given a terminal leave payment of not less than a
period of one month for each five-year period of past service as an employee
with the local unit, or other enhanced benefits that may be provided or
negotiated. For the purposes of this paragraph, "terminal leave
payment" means a single, lump sum payment, paid at termination, calculated
using the regular base salary at the time of termination. Unless otherwise
negotiated or provided by the employer, a terminal leave benefit shall not
include extended payment, or payment for retroactive salary increases, bonuses,
overtime, longevity, sick leave, accrued vacation or other time benefit, or any
other benefit.]

[(3)the]b.
The Civil Service Commission shall place any employee that has permanent
status pursuant to Title 11A, Civil Service, of the New Jersey Statutes, and
that is terminated for reasons of economy or efficiency at any time by either
local unit on a special reemployment list for [any
civil service employer within the county of the agreement or any political
subdivision therein]the local unit from which the employee is terminated.

[(4) when a proposed shared service agreement
affects employees in local units subject to Title 11A, Civil Service, of the
New Jersey Statutes, an employment reconciliation plan shall be filed with the
Civil Service Commission prior to the approval of the shared service
agreement. The commission shall review it for consistency with this section
within 45 days of receipt and it shall be deemed approved, subject to approval
of the shared service agreement by the end of that time, unless the commission
has responded with a denial or conditions that must be met in order for it to
be approved.]

[(5)when]c.
When an action is required of the Civil Service Commission by this section,
parties to a planned shared service agreement may consult with that commission
in advance of the action and the commission shall provide such technical
support as may be necessary to assist in the preparation of an employment
reconciliation plan or any other action required of the commission by this section.

[b.]d. If all the local units that are parties to the agreement are subject
to the provisions of Title 11A, Civil Service, of the New Jersey Statutes, the
Civil Service Commission shall create an implementation plan for the agreement
that will: (1) transfer employees with current status in current title unless
reclassified, or (2) reclassify employees into job titles that best reflect the
work to be performed. The Civil Service Commission shall review whether any
existing hiring or promotional lists should be merged, inactivated, or
re-announced. [Non-transferred
employees shall be removed or suspended only for good cause and after the
opportunity for a hearing before the Civil Service Commission; provided,
however, that they may be laid-off in accordance with the provisions of
N.J.S.11A:8-1 et seq., and the regulations promulgated thereunder.] The final decision of
which employees shall transfer to the new employer is vested solely with the
local unit that will provide the service [and
subject to the provisions of any existing collective bargaining agreements
within the local units].

[c.]e. If the local unit that will provide the service pursuant to a shared
service agreement is subject to Title 11A, Civil Service, of the New Jersey
Statutes, but the local unit to receive the service is not subject to that
Title, and the contracting local units desire that some or all employees of the
recipient local unit are to be transferred to the providing local unit, the
Civil Service Commission shall vest only those employees who have been employed
for one year or more in permanent status pursuant to N.J.S.11A:9-9 in
appropriate titles, seniority, and tenure with the providing local unit based
on the duties of the position. The final decision of which employees shall
transfer to the new employer is vested solely with the local unit that will
provide the service [and
subject to the provisions of any existing collective bargaining agreements
within the local units].
Once transferred, employees shall be subject to all applicable collective
bargaining agreements, employment contracts, and personnel policies that exist
for the local unit that will provide the service.

[d.]f. If the local unit that will provide the service is not subject to the
provisions of Title 11A, Civil Service, of the New Jersey Statutes, but the
local unit that will receive the service is subject to that Title and the
parties desire that some or all employees of the recipient local unit are to be
transferred to the providing local unit, the transferred employees shall be
granted tenure in office and shall only be removed or suspended for good cause
and after a hearing; provided, however, that they may be laid-off [in accordance with the
provisions of N.J.S.11A:8-1 et seq., and the regulations promulgated thereunder]. A permanent
employee who is laid off for reasons of economy due to the joint meeting or
shared service agreement shall be given notice at least 45 days prior to the
layoff, and shall have a right to appeal the good faith of such layoff to the
Civil Service Commission. Appeals must be filed within 20 days of final notice
of such layoff. The transferred employees shall be subject to layoff
procedures prior to the transfer to the new entity. Once transferred, they will
be subject to any employment contracts and provisions that exist for the new
entity. The final decision of which employees shall transfer to the new
employer is vested solely with the local unit that will provide the service and
subject to the provisions of any existing collective bargaining agreements
within the local units.

(cf: P.L.2008, c.29, s.101)

2. Section 19 of P.L.2007,
c.63 (C.40A:65-19) is amended to read as follows:

19. a. When a local unit
agrees to participate in a joint meeting that will provide a service that the
local unit is currently providing itself through public employees, [the agreement]the local unit
shall [include]submit an
employment reconciliation plan to the Civil Service Commission in
accordance with this section, which shall specifically identify the
contracting local unit and the joint meeting. [An employment reconciliation plan shall be
subject to the following provisions]A layoff plan for a local unit that has adopted Title 11A, Civil Service, of
the New Jersey Statutes, may be substituted for an employment
reconciliation plan if it includes, at a minimum, the following requirements:

(1) a determination of those
employees, if any, that shall be transferred to the joint meeting, retained by
the contracting local unit, or terminated from employment for reasons of
economy or efficiency [subject
to the provisions of any collective bargaining agreements within the local
units].

(2) [any employee terminated
for reasons of economy or efficiency by the contracting local unit providing the
service or by the joint meeting shall be given a terminal leave payment of not
less than a period of one month for each five-year period of past service as an
employee with the local unit, or other enhanced benefits that may be provided
or negotiated. Unless otherwise negotiated or provided by the employer, a
terminal leave benefit shall not include extended payment, or payment for
retroactive salary increases, bonuses, overtime, longevity, sick leave, accrued
vacation or other time benefit, or any other benefit]a statement of the intended jurisdiction
of the Civil Service Commission pursuant to paragraph (2) of subsection f. of
this section, if applicable.

[(3) the]b. The Civil Service Commission shall place any employee that has
permanent status pursuant to Title 11A, Civil Service, of the New Jersey
Statutes, and that is terminated for reasons of economy or efficiency at
any time by either local unit on a special reemployment list for [any civil service
employer within the county of the agreement or any political subdivision
therein]the
local unit from which the employee is terminated.

[(4) when a proposed joint contract affects
employees in local units that operate under the provisions of Title 11A, Civil
Service, of the New Jersey Statutes, an employment reconciliation plan shall be
filed with the Civil Service Commission prior to the approval of the joint
meeting agreement. That commission shall review the plan for consistency with
this section within 45 days of receipt and it shall be deemed approved, subject
to approval of the joint meeting agreement by the end of that time, unless that
commission has responded with a denial or conditions that must be met in order
for it to be approved.]

[(5)when]c.
When an action is required of the Civil Service Commission by this section,
parties to a proposed joint contract may consult with the commission in advance
of the action and the commission shall provide such technical support as may be
necessary to assist in the preparation of an employment reconciliation plan or
any other action required of the commission by this section.

[b.]d. If both the local unit and joint meeting operate under the
provisions of Title 11A, Civil Service, of the New Jersey Statutes, the Civil
Service Commission shall create an implementation plan for employees to be
hired by the joint meeting that will: (1) transfer employees with current
status in current title unless reclassified or (2) reclassify employees, if
necessary, into job titles that best reflect the work to be performed. The
Civil Service Commission shall review whether any existing hiring or
promotional lists should be merged, inactivated, or re-announced. [Non-transferred employees
shall be removed or suspended only for good cause and after the opportunity for
a hearing before the Civil Service Commission; provided, however, that they may
be laid-off in accordance with the provisions of N.J.S.11A:8-1 et seq., and the
regulations promulgated thereunder.]
The final decision of which employees shall transfer to the new employer is
vested solely with the local unit that will provide the service [and subject to the
provisions of any existing collective bargaining agreements within the local
units].

[c.]e. If the joint meeting operates under the provisions of Title 11A,
Civil Service, of the New Jersey Statutes, and a local unit receiving the
service is not subject to that Title, and the parties desire that some or all
employees of the local unit be transferred to the joint meeting, the Civil
Service Commission shall vest only those employees who have been employed one
year or more in permanent status pursuant to N.J.S.40A:9-9 in appropriate
titles, seniority, and tenure with the providing local unit based on the duties
of the position. Once transferred, employees shall be subject to all
applicable collective bargaining agreements, employment contracts, and
personnel policies that exist for the joint meeting. The final decision of
which employees shall transfer to the new employer is vested solely with the
joint meeting [and
subject to the agreements affecting the parties, provided that those agreements
do not conflict with the provisions of any existing collective bargaining
agreements within the local units].

[d.]f. (1) If the joint meeting does not operate under the provisions of
Title 11A, Civil Service, of the New Jersey Statutes, and the local unit
receiving the service is subject to that Title, and the parties desire that
some or all employees of the recipient local unit are to be transferred to the
joint meeting, then the transferred employees shall be granted tenure in office
and shall be removed or suspended only for good cause and after a hearing. The
transferred employees shall be subject to layoff procedures prior to the
transfer to the new entity. Once transferred, they will be subject to any applicable
collective bargaining agreements, employment contracts, and [provisions]personnel policies
that exist for the new entity. The final decision of which employees shall
transfer to the joint meeting is vested solely with the joint meeting [and subject to the
provisions of any existing collective bargaining agreements within the local
units].

(2) A joint meeting
established after the effective date of sections 1 to 37 of P.L.2007, c.63
(C.40A:65-1 et al.) that affects both employees in local units subject to Title
11A, Civil Service, of the New Jersey Statutes and employees in local units not
subject to that Title, shall determine whether the employees of the joint
meeting shall be subject to the Title. If the joint meeting determines that
the employees shall not be subject to Title 11A, Civil Service, of the New
Jersey Statutes, then the employees from the local units in which the Title is
in effect shall have the same rights as employees transferred pursuant to
paragraph (1) of this subsection.

(cf: P.L.2008, c.29, s.102)

3. This act shall take
effect immediately.

STATEMENT

This bill amends sections 11 and
19 of the "Uniform Shared Services and Consolidation Act,"
N.J.S.A..40A:65-11 and N.J.S.A..40A:65-19, concerning the establishment of an
employment reconciliation plan when a local unit agrees to participate in a
joint meeting or shared service agreement that will provide a service that the
local unit is currently providing itself through public employees. The bill
would permit a local unit that has adopted Title 11A, Civil Service, to
substitute a layoff plan for the employee reconciliation plan under certain
circumstances.

This bill is part of the
Governor’s toolkit for local units, and is intended to reduce the hurdles
standing in the path of shared service agreements and joint meetings.